Is Nio the Next Fisker?
While the automotive industry is still embracing an electric future, the pace at which U.S. automakers are heading in that direction has slowed. A lack of affordable electric vehicle (EV) options, high interest rates making big purchases less affordable, and a saturated high-price EV market have all but stalled sales momentum.
Those conditions will put immense pressure on unprofitable start-up EV makers and will almost certainly bring some industry consolidation. We've already seen Fisker crumble under the pressure. For investors, the question is: What company might be next? Could Nio (NYSE: Nio) be the next Fisker?
Rewind back about four years ago, when Nio issued its own "going concern" message, which essentially meant that it let investors know it might not have the cash to fund operations for another 12 months. Despite this dire situation, the company managed to secure funding from strategic investors, as well as the Chinese government.
Source Fool.com
